Botswana is most attractive investment destination in Africa

Created: Monday, 15 May 2017 07:53

(Image source: Artur Jan Fijalowski/Commons)Botswana is the most attractive economy for investments flowing into the African continent, according to the latest Africa Investment Index 2016 by Quantum Global Research Lab

The country scores highly based on a range of factors that include credit rating, current account ratio, import cover and ease of doing business.

Prof Mthuli Ncube, head of Quantum Global Research Lab stated, “Despite considerable external challenges and the fall in oil prices, many of the African nations are demonstrating an increased willingness to achieve sustainable growth by diversifying their economies and introducing favourable policies to attract inward investments. Botswana is a case in example – its strategic location, skilled workforce and a politically stable environment have attracted the attention of international investors, leading to a significant influx of FDI.”

The report stated the top five African investment destinations attracted an overall FDI of US$13.6bn. Morocco was ranked second on the index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ration and overall business environment. Egypt was ranked third due to increased foreign direct investment and real interest rates, and a growing urban population. The fourth country on the list, South Africa, scored well on the growth factor of GDP, ease of doing business in the country and significant population. While Zambia was the fifth country on the list due to its significant domestic investment and access to money supply.

Ncube added, “With a population of over one billion people and rapidly growing middle class, Africa clearly offers significant opportunities to invest in the continent’s non-commodities sectors such as financial services, construction and manufacturing. However, structural reforms and greater private sector involvement are crucial to unlocking Africa’s true potential.”